Khulna Printing shares soar 56% in seven days

Khulna Printing and Packaging Ltd (KPPL), a concern of the Lockpur Group, has witnessed an unexpected 56% surge in its share price over the past seven days, even though the company's operations have been halted for more than three years.

As of yesterday, KPPL's share price reached Tk11.20 on the Dhaka Stock Exchange (DSE), a sharp increase from its trading value of Tk7.20 on 23 December last year. 

This sudden rise has raised eyebrows among market observers, especially given the lack of updates regarding the company's operations or financial performance since December 2022.

Market insiders have described the sudden rally as highly unusual, citing the absence of any significant announcements or developments that might justify such a movement. 

But this isn't the first time KPPL's share price has seen unexplained volatility. Between October 2023 and February 2024, the company's stock skyrocketed by 480%, reaching a peak of Tk56.80. 

However, the rally was short-lived, as prices eventually plummeted to Tk7 by December 2024.

The DSE had regularly warned investors about the company's non-operational status and factory closure by publishing updates on its website, but updates ceased after August 2024.

The factory of Khulna Printing has remained closed for three years due to the freezing of the Lockpur Group's bank accounts by government authorities, KPPL Chairman SM Amzad Hossain told The Business Standard.

Amzad, who is also a former chairman of South Bangla Agriculture and Commerce (SBAC) Bank, is facing charges of fund misappropriation brought by the Anti-Corruption Commission (ACC). 

When contacted for comment, he acknowledged that KPPL's operations have been at a standstill for years, with no progress made to resolve the situation.

"We are trying to unfreeze the bank accounts, but there has been no progress," Amzad told TBS.

The freezing of the accounts stems from a court order in connection with embezzlement charges against Amzad, his wife, and his daughter. Authorities have frozen 933 bank accounts linked to him and his businesses, including 740 accounts with SBAC Bank, according to media reports. 

An ACC investigation revealed that Amzad allegedly embezzled nearly Tk80 crore through various company accounts.

Khulna Printing, which was listed on the stock exchange in 2014, faced major operational hurdles in 2015 when the National Board of Revenue (NBR) locked the company's business identification number (BIN) over tax evasion allegations. 

Although the NBR reopened the BIN in 2018, allowing the factory to resume operations in 2019, the company struggled to sustain business due to the Covid-19 pandemic.